Royal Orchid Hotels sells Hyderabad five-star hotel to SAMHI for Rs 179 crore

NEW DELHI: Royal Orchid Hotels has sold its Hyderabad five-star property Regenta One to Gurgaon-based hotel development and investment group SAMHI for Rs179 crore. The 159-room hotel is the second property that the chain has sold to SAMHI since 2012.

Confirming the acquisition of the asset along with the business, SAMHI’s managing director Ashish Jakhanwala said: “We have plans to re-brand the five-star hotel in the coming quarter and we are in talks with various international brands to run the property.”

The transaction is part of a debt restructuring plan and it will help reduce Royal Orchid Hotels’ debt burden from Rs175 crore toRs35 crore, a person familiar with the matter said. Royal Orchid Hotels did not respond to a query on the development. The hotel chain, promoted by Chander K Baljee, had in 2012 sold its Ahmedabad property to SAMHI for Rs67 crore as part of the debt reduction plan. Royal Orchid Hotels owns and operates 21 hotels across India and Africa in the upscale and mid-scale segments.

SAMHI has partnerships with Chicago-based Equity International (EI), Marriott International and GTI Capital Group. In 2012, the company had rebranded the Ahmedabad hotel as Four Points by Sheraton and also acquired 60% ownership interest in 15 Formule 1 Hotels in India.